Shilpi Chowdhary: Guiding Start-ups with Lighthouse Canton’s Latecomer Advantage

In the world of investments, latecomers often face challenges, but Shilpi Chowdhary, the Group CEO and co-founder of Lighthouse Canton, has turned the tables with a distinctive approach. With a background that includes managing director roles at Credit Suisse Private Bank and Citibank in India, Chowdhary is leading Lighthouse Canton, a Singapore-based global investment firm, to new heights by offering a unique combination of wealth and asset management services and functioning as a venture equity and debt fund.

Lighthouse Canton takes pride in its all-encompassing strategy, aiming to support start-ups throughout their entire lifecycle. Chowdhary explains, “We want to capture the whole lifecycle of a start-up.” In partnership with Nueva Capital, they launched LC Nueva Capital, an entity focusing on venture investments. Their approach includes stepping in at the pre-Series A stage with an investment ticket size ranging from $1 million to $5 million. Later on, in the growth stages (Series B, C, and D onwards), the firm offers venture debt, a valuable tool for companies that prefer not to dilute their equity further. Lighthouse Canton has been dedicated to identifying niches, looking beyond major cities, and backing emerging players with the potential to thrive in these segments.

Spotting the Opportunity in Growing Sectors:

Chowdhary’s focus extends to segments with the potential for significant growth. One example is the electric vehicle financing platform, Revfin. Founded by Sameer Aggarwal in 2018, Revfin finances loans for electric three-wheelers in semi-urban, Tier III, and beyond areas. The startup has already financed over 10,000 electric three-wheelers in 14 states and has ambitious plans to finance two million electric vehicles within the next five years. The growth story doesn’t stop there, as Revfin explores opportunities in two- and four-wheelers for the last-mile deliveries and ride-sharing taxis.

Lighthouse Canton has also tapped into the potential of the women’s footwear market by supporting Monrow. Founded by NIFT alumnus Veena Aishya in September 2016, Monrow partnered with the Future Group initially, but later shifted its focus to direct online sales. With funding rounds in 2021 and May 2022, Monrow aims to expand its hybrid model, catering to Tier II, III, and beyond cities. According to Chowdhary, these cities are where the future lies, offering promising opportunities.

Chowdhary sees potential in supporting ventures operating in sectors poised to reach an inflection point in the coming years. One such area is the used-car subscription and leasing market, where Lighthouse Canton backs PumPumPum. Established in 2018, PumPumPum operates in several cities, including Bengaluru and Delhi-NCR. The startup plans to expand to over 50 cities, offering a flexible approach to car ownership, suitable for the young generation. Leasing offers cost-effective mobility solutions and the freedom to explore a variety of options, making it appealing to a generation that values flexibility and cost-efficiency.

Despite facing a funding winter, Chowdhary is optimistic about the funding landscape in India. He believes there is ample capital available for deserving and performing start-ups. “Capital will always chase the right kind of founders,” he says, emphasizing that a lack of funding for deserving start-ups should not be a concern. Furthermore, the Indian start-up ecosystem is witnessing significant growth, with a surge in mergers and acquisitions (M&As). In 2019, there were 139 M&As, and this number more than doubled to 253 in 2021. These exits reflect the growing maturity of the start-up ecosystem and serve as a reassuring factor for foreign funds. Ashwin Raguraman, co-founder and partner at Bharat Innovation Fund, notes that the mix of Indian start-up founders is evolving. Just as the Indian cricket team diversified over the years, the composition of Indian start-up founders is shifting from predominantly metropolitan cities to smaller towns and cities. This evolution is vital for the growth and inclusivity of the start-up ecosystem.

Shilpi Chowdhary acknowledges the challenge of differentiating Lighthouse Canton in a competitive market with numerous domestic and foreign funds. She emphasizes the importance of being selective when it comes to raising capital. Chowdhary highlights that the right kind of stakeholders is crucial, and money alone doesn’t serve the purpose. “For us, VC stands for venture comfort and not venture capital,” she concludes, underscoring the firm’s dedication to providing support and value to the startups it invests in.

As a latecomer, Lighthouse Canton is leveraging its unique approach to create opportunities and empower start-ups, demonstrating that it’s never too late to make a substantial impact in the world of investments.